Cognitive and Behavioral Models 5 Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    627

Cognitive and Behavioral Models

Lecturer:

Comparison between cognitive and behavioral models between Malaysia and Australia

Cognitive model

According to this model, a consumer is regarded as a problem solver and follows a process before making a decision (Shim, 2009). It perceives a consumer as having limited information and has cognitive limitations of their minds, and has limited time in making decisions. It therefore implies that consumers will develop shortcuts while making decision rules.

Emotional model

This model asserts that several consumers a times attach emotions or feelings to certain belongings. Some of the belongings will be of over-romantic value, or will remind of a special event. According to this model, consumers will spend little time in search and evaluation of alternatives since the decisions made are based on emotional rather than rational value/product aspects.

Malaysia-Australia Free Trade Agreement

This is a broad, high-quality agreement that incorporates the Australian economy into a growing economy of the Asian region. This agreement is built on gains flowing into the economy of Australia from the ASEAN-New Zealand Free Trade Agreement which was started in the year 2010for Malaysia and Australia. MAFTA allows Australian exporters to venture into Malaysian market by eliminating or lowering the tariffs that Malaysian government imposes on all the exports from Australia. This will enhance the competitiveness of Australian businesses in Malaysia. The association provides Australian service providers enhanced accessibility to Malaysian market and reduces trade barriers

Since there has been existence of trading block between Malaysia and Australia, most of the marketers especially of Red wine are exploring opportunities in Malaysia. Existence of MAFTA has eased the trading operations between the two countries. As for the case of Red wine, Malaysia has been considered as a source of market for the product (Rosli Salleh, 2005).

According to the cognitive and emotional theory, consumers are regarded as those who have little concern in searching for information and do not have time in making decisions. Since there has been an increase in interest in Malaysian market, exporters will maximize this opportunity in pleasing those emotional purchasers whose purchasing decisions depend on their moods i.e. state of mind during the buying process. The models assist the exporters in identifying the decision making processes of the Malaysian customers so as to develop marketing strategies to sell the product (Mastor, 2006).

MAFTA provides several opportunities to Australian exporters which include: it gives an opportunity to use a simple declaration of origin to where the goods originated. Australian exporters will increase their foreign equity limits for some particular services in the telecommunication, financial services and specialized services industries. Furthermore, over 90% of Australian exports are entitled to free tariff treatment. Australian managers will be increased in Malaysian market and many specialists will be given opportunity to acquire Malaysian visas where they can easily work with their families (Siu, 2007). In conclusion, because of the opportunity to acquire visas and work in the Australian market, exporters are able to interact freely with their consumer. Cognitive and emotional models will assist the exporters to understanding their consumers’ buying decisions which will assist in designing the marketing strategies for their Red wine products.

Reference list

Mastor, K.A.J.P.a.C.M., 2006. Consumer Decision-Making Styles. European Journal of Marketing, 30 (12), pp. 10-21.

Rosli Salleh, J.B.a.T.B.S., 2005. Malaysian Cosumer Decision-Making Styles on Fast-Moving Consumer Goods. Asia Pacific Economics & Business Conference, Sarawak, Malaysia, 252-258., pp.252-258.

Schutte, H.a.C.D., 2008. Consumer Behavior in Asia. London: Macmillan Press.

Shim, S.a.K.A., 2009. Typology of Apparel Shopping Orientation Segments among Female Consumers.. Clothing and Textiles Research , 12, pp. 73-85.

Siu, N.Y.M..W., 2007. Adapting Consumer Style Inventory to Chinese Consumers. Journal of International Consumer Marketing , 13 , pp.29-47.

Walsh, M.a.H.-T., 2001. German Consumer Decision-Making Styles. Journal of Consumer Affairs 23 (1): 73-95, pp. 73-95.